WASHINGTON, July 2 — U.S. President Donald Trump has fired back at Elon Musk amid their escalating public feud, suggesting the Department of Government Efficiency (DOGE) investigate the substantial subsidies received by the billionaire’s companies.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote Tuesday on Truth Social. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”
“Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!” he added, referencing the same government efficiency body once led by Musk.
Trump’s comments came a day after Musk renewed his blistering criticism of Trump’s tax-cut and spending legislation, calling it “utterly insane and destructive,” and accusing lawmakers who supported it of betraying their promises to limit government spending.
“Those who campaigned on fiscal responsibility but voted for this bill should hang their heads in shame!” Musk posted on X Monday. “And they will lose their primary next year if it is the last thing I do on this Earth.”
Responding directly to Trump’s attack, Musk doubled down on his anti-spending stance: “I am literally saying CUT IT ALL. Now.”
Musk’s reversal marks a sharp break from his earlier alignment with Trump. The Tesla and SpaceX CEO contributed nearly $300 million to Trump’s re-election campaign and spearheaded the DOGE initiative during Trump’s first term — a now-controversial federal cost-cutting office.
He has since argued that Trump’s new legislation would obliterate the budgetary gains made through DOGE and sharply increase the national debt. Independent analysts estimate the bill could add $3 trillion to the federal deficit.
Musk’s companies, including SpaceX and its satellite unit Starlink, have reaped more than $22 billion in U.S. federal contracts. Tesla, meanwhile, benefits from various subsidies and green energy incentives.
The growing rift has had financial consequences: Tesla stock suffered a historic $150 billion wipeout on June 5, the biggest single-day market value drop in the company’s history. Shares dipped again Tuesday in Frankfurt trading, falling 5%.
While Musk’s influence in Congress remains uncertain, his confrontational stance is causing political unease within the Republican Party. Party strategists worry that the spat could undermine the GOP’s efforts to retain its congressional majority in the 2026 midterms.
Musk has also called for the formation of a new political party, saying the budget fight exposes what he sees as a false divide in Washington. “We live in a one-party country – the PORKY PIG PARTY!!” he wrote.
With the feud becoming deeply personal and politically consequential, both Trump and Musk appear determined to escalate rather than de-escalate — turning a policy disagreement into a battle over control, influence, and ideology at the heart of the Republican movement.
Read more: Musk Criticizes Spending Bill, Vows to Oust Supporters
